The controversial Johnson & Johnson JNJ bankruptcy strategy will face a fresh trial to urge a judge to allow it to use the bankruptcy process to resolve claims that its talc-based products caused cancer.
- More than 38,000 plaintiffs have alleged the Company's talc products caused ovarian cancer and mesothelioma, deadly cancer linked to asbestos exposure.
- J&J maintains that its consumer talc products are safe and confirmed through several tests to be asbestos-free.
- The Company in October placed the talc claims into a newly-created entity called LTL Management LLC, which filed for bankruptcy protection in North Carolina.
- Also See: US Judge Allows Johnson & Johnson To Split Talc Powder Liabilities Into New Company.
- JNJ adopted "Texas two-step," which allows companies to split in two, with one part of the Company keeping valuable assets while the other includes liabilities.
- U.S. Bankruptcy Judge Michael Kaplan has scheduled a five-day trial to consider a bid by committees representing the plaintiffs to dismiss the bankruptcy case.
- J&J has proposed giving $2 billion to LTL to put into a trust to compensate the 38,000 current plaintiffs and future claimants.
- Related: Supreme Court Denies Johnson & Johnson's Challenge to Baby Powder Cancer Judgement.
- Price Action: JNJ shares traded .11% lower at $167.52 premarket on the last check Monday.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
